PM Modi to launch Madhya Pradesh govt's new startup policy on May 13

A host of incentives will be given to eligible early stage companies under the Madhya Pradesh government's Startup Policy and Implementation Plan-2022, an official said

Prime Minister Narendra Modi will on May 13 virtually launch the Madhya Pradesh government's new startup policy aimed at encouraging budding entrepreneurs in the state, an official said on Monday.

A host of incentives will be given to eligible early stage companies under the Madhya Pradesh government's Startup Policy and Implementation Plan-2022, he said.

The official informed that under the policy, monetary assistance will be given for paying rent for a startup's workplace, salaries of employees, besides having a provision for financial assistance for product patent and also reservation in government purchases.

"If a startup is working from a rented place, then under the new policy Rs 5,000 assistance per month will be paid under the head rent and Rs 5,000 a month salary each for 25 employees, the state's Micro, Small and Medium Enterprises (MSME) secretary, P Narhari, told reporters here.

Besides, early stage ventures will be given allowances for training their employees, Narhari said.

For product patents, they will be paid an assistance of up to Rs five lakh, the senior bureaucrat said.

He clarified that all financial assistance envisaged under the new policy is in form of grants which are not required to be paid back to the government.

"As per rules, we can pay a maximum of Rs 15 lakh as grant to each startup recognized by the Centre and if the entrepreneur is a woman, then this amount goes up to Rs 18 lakh," Narhari said.

The state's MSME minister, Om Prakash Saklecha, said the state government has prepared the new startup policy in three months after holding discussions with all stakeholders.

He informed that eligible startups will get the benefit of reservation in government purchases.

According to officials, a total of 1,937 startups recognized by the Centre and the state are functional in Madhya Pradesh and among them 45 per cent are run by women entrepreneurs.